S&P Global Upgrades AMC Credit Rating to 'B-' on Box Office Strength

S&P Global Ratings has upgraded AMC Entertainment Holdings Inc.'s (NYSE:AMC) corporate credit rating to 'B-' from 'CCC+', pointing to the company's improved operational results and a clear path toward generating sustained positive free cash flow. The rating agency maintained a stable outlook on the movie theater operator.

Details of the Upgrade

The upgrade reflects AMC's recent financial performance, which included record revenue and EBITDA in the second quarter of 2026. S&P also raised its issue-level ratings on several of AMC's debt instruments:

• The $2 billion first-lien term loan was upgraded to 'B+' from 'B'.
• Muvico LLC secured notes and 7.5% AMC secured notes were raised to 'B-' from 'CCC+'.
• The Odeon first-lien term loan moved to 'B' from 'B-'.
• The $112 million exchangeable notes were upgraded to 'CCC' from 'CCC-'.

Improved Financials and Debt Management

The rating action follows a period of significant financial improvement for AMC. The company reported revenue growth of 14.2% and an adjusted EBITDA increase of approximately 37% in the second quarter of 2026 compared to the prior-year period. AMC has also actively managed its debt, using proceeds from share offerings to pay down $125 million in subordinated notes and seeing noteholders convert $156 million in exchangeable notes into common stock.

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These efforts to reduce debt and boost EBITDA have lowered the interest rate on about 75% of AMC's debt, resulting in estimated annual savings of $51 million. Despite these improvements, the company still carries a substantial debt burden of about $3.8 billion, with its nearest maturity not until 2029. AMC held $778 million in cash at the end of the second quarter.

Box Office Outlook

The upgrade is underpinned by a robust outlook for the film industry. S&P now expects the domestic box office to approach $10 billion in 2026, a significant increase from its original $9.3 billion estimate and 2025's $8.6 billion total. This forecast is driven by strong performances from major releases like "Toy Story 5" and "The Super Mario Galaxy Movie."

Reflecting this industry-wide strength, the rating agency projects AMC's revenue will grow by about 13% in 2026 and 4%-5% in 2027. S&P anticipates AMC will report a modest free cash flow deficit in 2026 before achieving sustained positive free cash flow in 2027.